Yep.

Its 'federated' as long as you ignore a single massive chokepoint controlled by one company that allows them to block/ban/censor users of any part of the system.

So functionally, their 'federation' system is actually just a false marketing/propoganda campaign that may also result in crowd sourcing some server costs.

It's psuedo-federation, along the lines of a psuedo-historian or psuedo-scientist: They pretend to be something they are not, in such a way that makes them seem trustworthy when they are in fact not.